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Feb 1, 2012
02/12
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the bill -- and freddie mac act. our bill comes in the aftermath of a series of events that began last november when reports surfaced that the federal housing finance agency, fhfa, approved nearly $13 million in bonuses for ten executives at the enterprise -- that enterprise that supervises fannie mae and freddie mac. in response, senator thune and i spearheaded a bipartisan letter signed by 58 other senators to the fhfa acting director, edward demarco, and treasury secretary timothy geithner. we expressed outrage over these pay levels. almost three months after the letter was sent the pressure was on. government regulators were cutting the pay of executives they hired to replace the departing heads of fannie mae and freddie mac. also in response to our efforts, house finance services committee chairman spencer baccus introduced legislation suspending these bonuses and limiting future compensation packages for fannie and freddie employees. in november his committee passed the bill by a vote of 52-4. the begich-thune
the bill -- and freddie mac act. our bill comes in the aftermath of a series of events that began last november when reports surfaced that the federal housing finance agency, fhfa, approved nearly $13 million in bonuses for ten executives at the enterprise -- that enterprise that supervises fannie mae and freddie mac. in response, senator thune and i spearheaded a bipartisan letter signed by 58 other senators to the fhfa acting director, edward demarco, and treasury secretary timothy geithner....
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Nov 6, 2012
11/12
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i was on a freddie mac board of head of governance nominating committee. the first ceo of freddie put in place by the treasury department of the time of conservatorship quit after six months. we had to make a pitch to ed to take the job. it was fairly simple, and most challenging job that was a dramatic understatement. but the opportunity to do meaningful public service. freddie and fannie needed strong leadership and sticky guidance as the rehabilitated themselves and waited for the government to decide just what to do with them. i should still point out we are waiting for the government to decide just what to do with them and it's now four years since conservatorship, and beyond some partisan back-and-forth about the bank's handling foreclosures, housing policy has been one of the elephants in the room during the campaign. ed has had an outstanding career in both public and private sector leading important financial institutions, having degrees from dartmouth, hbos and harvard law school it started his career with a philadelphia investment firm. ccook an
i was on a freddie mac board of head of governance nominating committee. the first ceo of freddie put in place by the treasury department of the time of conservatorship quit after six months. we had to make a pitch to ed to take the job. it was fairly simple, and most challenging job that was a dramatic understatement. but the opportunity to do meaningful public service. freddie and fannie needed strong leadership and sticky guidance as the rehabilitated themselves and waited for the government...
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May 30, 2012
05/12
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fannie mae and freddie mac were cooperating. the fund of almost half of it and they did this to meet the housing goals because those securities counted for the gold at the same time they were competing with them for market share because they were required by the regulators to do it. so i called them pls. when they went for broke in the first half of the decade, fannie mae and freddie mac went for broke the competition with them. in the next three years to me and freddie mac went broke. i only have one slight left on fannie mae and freddie mac and then we are going to talk about how the private label securitization market worked. had there been a private label securitization market, fannie mae and freddie mac still could have caused a systemic crisis because they had no way of generating the capitol subsidy to get the home ownership rate of to 70%. now it's possible the politicians would have relieved them of that goal and just ignored it. with private label securitization going over the cliff, the market share mandate was going
fannie mae and freddie mac were cooperating. the fund of almost half of it and they did this to meet the housing goals because those securities counted for the gold at the same time they were competing with them for market share because they were required by the regulators to do it. so i called them pls. when they went for broke in the first half of the decade, fannie mae and freddie mac went for broke the competition with them. in the next three years to me and freddie mac went broke. i only...
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Oct 31, 2012
10/12
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. >> until a few months ago, charles haldeman of freddie mac. he began the job in 2096 months after the company was taken over by the federal government. mr. haldeman spoke about the housing market and financial regulations at the john f. kennedy school of government. this is just under an hour. >> i'm a member of the faculty here at the kennedy school at a romani school of business and government. it's a pleasure to welcome all of you to this year's lecture, which is funded by nasd, which is now in the, the private broker of the u.s. industry. the focus is on financial regulation and each year we have had a leading public official responsible in some ways for u.s. regulation. this year, our speaker is a tiny bit of a stretch, but not really much at all. ed haldeman was ceo of freddie mac from a 2009 to just a few months ago. while in that role, ed was not really a formal regulator. he was responsible for running a very large public financial institution. freddie mac and its sibling, fannie mae are what are called government-sponsored entities,
. >> until a few months ago, charles haldeman of freddie mac. he began the job in 2096 months after the company was taken over by the federal government. mr. haldeman spoke about the housing market and financial regulations at the john f. kennedy school of government. this is just under an hour. >> i'm a member of the faculty here at the kennedy school at a romani school of business and government. it's a pleasure to welcome all of you to this year's lecture, which is funded by...
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Oct 31, 2012
10/12
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is the ceo of freddie mac at 5000 or 6000 employees. it looks like the entire market is going away from me. do i change not? i think the ceos, people running the company did make some changes and we each can make our judgment about what we would have done in that position, but at least argue it's a hard call. it would not be easy to be unchanged in terms of requirements on underwriting standards and have the market share go completely away like that. this is another indication of what i believe whether or not freddie was the cause of the financial crisis. and here we take a look at mortgage default rates over time the definition of default is 90 days to link went. you can see that i freddie and fannie at the wordstar delinquency rates cut up into the four to 5% down. for the overall market in our country, it got to be 10%. the subprime sector of the market he got into the 25%. so again, while i believe freddie and feeney did lower their standards, resulting delinquency rate, you can see a big difference between the way freddie and fanni
is the ceo of freddie mac at 5000 or 6000 employees. it looks like the entire market is going away from me. do i change not? i think the ceos, people running the company did make some changes and we each can make our judgment about what we would have done in that position, but at least argue it's a hard call. it would not be easy to be unchanged in terms of requirements on underwriting standards and have the market share go completely away like that. this is another indication of what i believe...
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Dec 1, 2012
12/12
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mac, let's find out what the parallels are so we interviewed a number of risk officers at freddie mac and the ceo and others and it built out, and when i said back at the end i looked and the one institution we didn't interview was td bank in canada, we didn't interview td bank but i started looking at their financial statements and in 2004 they said we are loading up because the united states some prime mortgages are really great deal and in 2005 they said we decided to get out of the american residential mortgage market. in 2006 they wrote we have taken losses over $100 million which was a lot for that company, but we are out. in 2010 and and clark the ceo gives an interview and says we got out of our exposure to some prime and all the stock analysts wrote that i was an idiot. so i collected as we went some comments that are unfortunately off the record rather than on in terms of alex's point at that the market is a little longer and he has a marvelous choice, longer than you can say employed. one risk officer of a major company, she said to me i got two choices, either i was going
mac, let's find out what the parallels are so we interviewed a number of risk officers at freddie mac and the ceo and others and it built out, and when i said back at the end i looked and the one institution we didn't interview was td bank in canada, we didn't interview td bank but i started looking at their financial statements and in 2004 they said we are loading up because the united states some prime mortgages are really great deal and in 2005 they said we decided to get out of the american...
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Nov 1, 2012
11/12
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ed haldeman was ceo of freddie mac from a 2009 to just a few months ago. while in that role, ed was not really a formal regulator. he was responsible for running a very large public financial institution. freddie mac and its sibling, fannie mae are what are called government-sponsored entities, gics. for years described as private companies at the public mission of supporting housing or more simply, as mixed public-private enterprises. but in september 2008, both institutions failed financially. they were placed in government conservatorship, becoming quite unmixed just public corporations. the gics have had many problems of their conservatorship. ad was not part of that arriving by the year after conservatorship. but add was part of the solution. the risk of running freddie mac is a big challenge. it's very large business. about 5000 people. but the balance sheet at its peak, before conservatorship of just under a trillion dollars. that included about $800 b that included about $800 billion of mortgages financed directly by freddie and another $1.7 trilli
ed haldeman was ceo of freddie mac from a 2009 to just a few months ago. while in that role, ed was not really a formal regulator. he was responsible for running a very large public financial institution. freddie mac and its sibling, fannie mae are what are called government-sponsored entities, gics. for years described as private companies at the public mission of supporting housing or more simply, as mixed public-private enterprises. but in september 2008, both institutions failed...
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Jan 24, 2012
01/12
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freddie mac was paying speaker gingrich a million $600,000 at the same time freddie mac was costing the people of florida millions of upon millions of dollars. >> last week, governor, you said that you complained that too much of your time on stage lately has been spent on negativity vis-a-vis the other candidates. you pledged to spend your time going after the incumbent president yet here we are again. >> i'll tell you why. i learned something from the last contest in south carolina and that was, i had incoming from all directions. was overwhelmed with a lot of attacks and i'm not going to get back and attacked day in, day out returning fire. i would like not the attacks against me. two ads run by speaker gingrich. outside fact-checking groups said they were false. he continued to run them. run by a campaign and one by a pac in his benefit. he can't control that. those ads were heavy on me. i will point out things people need to know. it was republicans who replaced him in the house. voted to reprimand him. it was the head lobbyist of freddie mac with whom he had a contract at a time w
freddie mac was paying speaker gingrich a million $600,000 at the same time freddie mac was costing the people of florida millions of upon millions of dollars. >> last week, governor, you said that you complained that too much of your time on stage lately has been spent on negativity vis-a-vis the other candidates. you pledged to spend your time going after the incumbent president yet here we are again. >> i'll tell you why. i learned something from the last contest in south...
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Nov 11, 2012
11/12
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we interviewed a number of risk officers at freddie mac and the ceo and others. and it sort of built out -- when i sat back at the end, i looked and the one institution we didn't interview was tv bank in can did. and bbt as you pointed out. we didn't interview td bank. i started look the their financial statements. in you're they said we're loading up because the sub plim mortgages are great deal in america and they said we decided to get out of the american residential mortgage market in '05. in '06 they said we have taken losses over $100 million. we are out in 2010 ed monday clark the ceo gives an interview and said we got out of our sub prime mortgages and they all wrote i was an idiot. i sort of collected as we went some comments or unfortunately off the record rather than on the record, i mean, in term's of alex's point the american can stay irrational longer and he has a marvelous twist on this longer than you can stay employed. i interviewed one risk officer of a major company, and she said to me, you know, i had two choices either i was going to be a pai
we interviewed a number of risk officers at freddie mac and the ceo and others. and it sort of built out -- when i sat back at the end, i looked and the one institution we didn't interview was tv bank in can did. and bbt as you pointed out. we didn't interview td bank. i started look the their financial statements. in you're they said we're loading up because the sub plim mortgages are great deal in america and they said we decided to get out of the american residential mortgage market in '05....
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Aug 18, 2012
08/12
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without fannie mae and freddie mac there would have been a housing bubble and a financial crisis. they permitted mortgage-backed securities that enabled lenders to bundle their loans in securities and sell them to other investors. once they sold them they no longer had a strong stake. and if people defaulted on their mortgages they got their pay-out of it. lenders are less vigilant in their scrutiny of borrowers. they made loans to people they shouldn't have made loans to because they can sell their mortgages and bundled securities downstream and once that happened banks who thought the derivative securities insulated them from risk start taking much more risk in the lending practice. when i bought my first outside put twenty-five% down. my kids buy houses with nothing down and get low-interest teaser loans. they have balloon payments after a few years. many people were critical of homeowners for borrowing too much and getting in over their heads loans they couldn't repay. john mccain was sharply critical of homeowners in that bucket but i think that underestimates the incentives
without fannie mae and freddie mac there would have been a housing bubble and a financial crisis. they permitted mortgage-backed securities that enabled lenders to bundle their loans in securities and sell them to other investors. once they sold them they no longer had a strong stake. and if people defaulted on their mortgages they got their pay-out of it. lenders are less vigilant in their scrutiny of borrowers. they made loans to people they shouldn't have made loans to because they can sell...
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Aug 13, 2012
08/12
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mac. angelo mozillo and bernie frank was the unholy alliance allowing country ride in those who copied them to create loans people could not repaid. because they sold those loans to the federal government made possible of barney frank through altruistic social benefits of housing putting people into house is they cannot afford. that is the world we barely survived. >> host: what do you do for it a living? >> ien investment appraiser for other investment in risers and giving advice when the markets to other investment managers who serve customers counselors are hedge fund managers. >> host: how much government regulation is and what you do? >> i don't handle the money. very little. but microfinance they are so regulated they cannot pick up the phone. i am now and know little firm that can influence $15 trillion without being regulated. >> host: what is it about ayn rand that has such a strong reaction? >> a great moral clarity. a romantic philosophy that draws young people where the good gu
mac. angelo mozillo and bernie frank was the unholy alliance allowing country ride in those who copied them to create loans people could not repaid. because they sold those loans to the federal government made possible of barney frank through altruistic social benefits of housing putting people into house is they cannot afford. that is the world we barely survived. >> host: what do you do for it a living? >> ien investment appraiser for other investment in risers and giving advice...
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111
Mar 31, 2012
03/12
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the first people are more familiar with the failure of fannie mae and freddie mac, the government mandate that banks make bad loans for houses and how that led to the and it's a crisis. and then the question of how the obama administration, the latter part of the bush administration reacted to that with bailouts and the stimulus funding. difference stimulus packages, not just the big one we generally think of. why that actually made the recession worse and the recovery weaker and creating a fewer jobs, increasing gdp less than other countries which did not do stimulus spending and that our recovery is weaker than previous recoveries because -- you can compare what we are going through now with the reagan recovery, the for recovery, recoveries back to the great depression, or you can compare it with other countries that are going through what we have been going through the last several years. in both cases the obama recovery is weaker, less strong, and in some cases bizarrely weaker than what has happened in the past. why? well, unlike reagan who got a deeper recession in terms of destruct
the first people are more familiar with the failure of fannie mae and freddie mac, the government mandate that banks make bad loans for houses and how that led to the and it's a crisis. and then the question of how the obama administration, the latter part of the bush administration reacted to that with bailouts and the stimulus funding. difference stimulus packages, not just the big one we generally think of. why that actually made the recession worse and the recovery weaker and creating a...
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Sep 16, 2012
09/12
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because of fannie mae and freddie mac and the federal housing administration, and federal rules, federal bank regulators, members of the jury, where the bonds who commanded that these banks owned mortgage-backed security. the worst possible investment that they could make, federal regulators commanded those banks that they had to hold those mortgages. those federal regulators and the federal rules are responsible for being -- bringing the big banks down. if we can restrain government and we can bring a muzzle on government and we can get rid of dodd-frank and get rid of all of these regulations, if we can get rid of all these tax increases our economy will flourish again. mom-and-pop investors will make money. we will all get rich and government can be small enough you can drown it in a. thank you very much. [applause] >> now your three minute closing statement. >> ladies and gentlemen of the jury agreed with the defense contention that government is a big part of the problem. government so vividly to make rules that benefited wall street enormously and enabled them to turn them to turn
because of fannie mae and freddie mac and the federal housing administration, and federal rules, federal bank regulators, members of the jury, where the bonds who commanded that these banks owned mortgage-backed security. the worst possible investment that they could make, federal regulators commanded those banks that they had to hold those mortgages. those federal regulators and the federal rules are responsible for being -- bringing the big banks down. if we can restrain government and we can...
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Apr 10, 2012
04/12
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edward demarco is the head of the agency regulating fannie mae and freddie mac. this morning he will give us an update on the health of the housing market. the treasury department and others have been pressuring the federal housing finance agency to reduce the amount owed on some of the fan and freddie's mortgage loans to prevent foreclosures. so far, mr. demarco has opposed the idea citing the politics impacts on fannie mae and freddie mac's financial health. [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> [inaudible conversations] >> welcome. i'm karen dynan, director at brookings. i'm pleased to introduce today's keynote speaker, edward demarco, acting director of the federal housing finance agency, or fhfa. director demarco has been in his current job for almost three years now, serving as the regulator and conservator of fannie mae and freddie mac. since going into conservators
edward demarco is the head of the agency regulating fannie mae and freddie mac. this morning he will give us an update on the health of the housing market. the treasury department and others have been pressuring the federal housing finance agency to reduce the amount owed on some of the fan and freddie's mortgage loans to prevent foreclosures. so far, mr. demarco has opposed the idea citing the politics impacts on fannie mae and freddie mac's financial health. [inaudible conversations] >>...
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Dec 25, 2012
12/12
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mac designed to cater to the s&l industry and more importantly allowed both fannie and freddie to buy a much wider variety of mortgages, not just fha loans or a tiny sliver of the market, but conventional mortgages, mainstream mortgages for the middle-class, even the upper-middle-class so fanny had a much larger role in the housing market and was spreading across the country like manifest destiny. why did this happen? there was no debate in public but the homebuilder's were for it, the american bankers association was for it, senator john sparkman of alabama was for it and so was representative wright hadn't of texas, george romney endorsed the idea, most of us were not paying attention. along came the carter administration. carter's housing arena was patricia roberts harris. hunter reminded her fannie mae was no longer government agency was supposed to be managing its affairs. mrs. harris friend legislation to try to restore more government control over fannie mae. under tried sending flowers to mrs. harris and even a box of fannie mae chocolate's. she sent an back. she said if she a
mac designed to cater to the s&l industry and more importantly allowed both fannie and freddie to buy a much wider variety of mortgages, not just fha loans or a tiny sliver of the market, but conventional mortgages, mainstream mortgages for the middle-class, even the upper-middle-class so fanny had a much larger role in the housing market and was spreading across the country like manifest destiny. why did this happen? there was no debate in public but the homebuilder's were for it, the...
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Nov 25, 2012
11/12
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do any anyone have a detailed plan on how to put fannie mae and freddie mac in to runoff? how do you take a $5 trillion enterprise and put if in discontinued operation over a time period that, you know, would be politically acceptable in ferm -- terms of disruption? >> bob, let's tart on that. after ward, if you want to catch me, we talk about that. i'll share a few ideas with you. >> i certainly don't have a plan. i think that alex and ed have suggestions and very interesting ones.
do any anyone have a detailed plan on how to put fannie mae and freddie mac in to runoff? how do you take a $5 trillion enterprise and put if in discontinued operation over a time period that, you know, would be politically acceptable in ferm -- terms of disruption? >> bob, let's tart on that. after ward, if you want to catch me, we talk about that. i'll share a few ideas with you. >> i certainly don't have a plan. i think that alex and ed have suggestions and very interesting ones.
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Nov 25, 2012
11/12
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and freddie mac to a lesser extent. bob has done a marvelous job of tracing this history and the evolution in the book. and for me it was something like a trip down memory lane, to read his book. because i kept running into names of people like ray lapin, roger brooke, all of the people who were involved in the agency and running it. one summer i read the guinness book, james buchanan, the nobel laureate, economic scientist, and got turned on to the concept of public choice theory. that was another alarm bell for me because it gave me another perspective in which to look at what is going on inside of washington. i thought very much about all of this would get salt because the problems were so immense that it seemed to me that if i would notice and i didn't come out of harvard or oxford, certainly the rest of the rest of the people of the industry would be more concerned than i was about this. i knew enough about economics to understand the difference in structure, in this duty -- industry structures, compared to duopoli
and freddie mac to a lesser extent. bob has done a marvelous job of tracing this history and the evolution in the book. and for me it was something like a trip down memory lane, to read his book. because i kept running into names of people like ray lapin, roger brooke, all of the people who were involved in the agency and running it. one summer i read the guinness book, james buchanan, the nobel laureate, economic scientist, and got turned on to the concept of public choice theory. that was...
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Aug 12, 2012
08/12
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we like him to barney frank who was the godfather of fannie mae and freddie mac. the two of them, mozilla in the private sector and frank and the public sector with this unholy alliance that allowed countrywide and people who profited by imitating countrywide to create loans people could never repay. why would you do that? they turned around and sold those to the federal government. how was that made possible? by barney frank for fannie and freddie in the name of all kinds of high-minded altruistic social benefits. housing for everybody and put 4 people in to mcmansions they can't afford. that is the world of "atlas shrugged". the world we barely survived in the financial crisis and still struggling to come out of. >> host: what do you do for a living? >> investment advisor for other investment advisers. >> host: what does that mean? >> i give strategic advice on stock market and currency market and commodity market and other investment managers who serve -- hedge fund managers and the like. >> host: in your work how much government regulation is in what you do? >
we like him to barney frank who was the godfather of fannie mae and freddie mac. the two of them, mozilla in the private sector and frank and the public sector with this unholy alliance that allowed countrywide and people who profited by imitating countrywide to create loans people could never repay. why would you do that? they turned around and sold those to the federal government. how was that made possible? by barney frank for fannie and freddie in the name of all kinds of high-minded...
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Mar 12, 2012
03/12
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this is from freddie mac in 1984, and these are the unknowns. that man, the cfo of freddie mac on how to use securitization. these new mortgage-backed securities offered something to the 1%. it offered them a safe place to put their money and get a little extra on the side and in this moment supply created demand first for mortgages and then for credit card debt furnished by these folks. how could one company start an industry? the help can from the gnomes. the associate. if i saw this it wouldn't make me want to invest in freddie mac securities. it is terrifying. but it would be funnier i think if it didn't end in tragedy. these developments were not inevitable. it wasn't the knowns that made mortgage-backed securities after all. it was government policy, it was business policy and ultimately it was us allowing it all to happen, and in doing so it became easier to invest in my credit card debt of them in small businesses. i want to give you a sense of the very first mortgage backed securities and where it came from as well. this is the advertis
this is from freddie mac in 1984, and these are the unknowns. that man, the cfo of freddie mac on how to use securitization. these new mortgage-backed securities offered something to the 1%. it offered them a safe place to put their money and get a little extra on the side and in this moment supply created demand first for mortgages and then for credit card debt furnished by these folks. how could one company start an industry? the help can from the gnomes. the associate. if i saw this it...
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Sep 20, 2012
09/12
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first, i rise to protest an action by the federal housing finance agency, fannie mae and freddie mac, that punish my state of connecticut and four other states for effectively protecting our citizens against unfair and abusive mortgage foreclosure practices. and i want to say right at the outset, i am determined to fight this action, along with my colleagues, during the comment period that we have to contest this very unwise, misguided, unacceptable decision. these agencies have just posted for 60-day comment a decision to increase fannie mae and freddie mac's guarantee fee for connecticut and four other states -- new jersey, new york, illinois and florida. why? because the protections that we have in place now against those abusive banking tactics that have so pervaded the mortgage foreclosure process, increased the length of time that it sometimes takes for foreclosure, and we have a mediation process that keeps people in their homes and enables settlements that actually save money. that is connecticut's crime. that is the reason that connecticut and for her other states and our hom
first, i rise to protest an action by the federal housing finance agency, fannie mae and freddie mac, that punish my state of connecticut and four other states for effectively protecting our citizens against unfair and abusive mortgage foreclosure practices. and i want to say right at the outset, i am determined to fight this action, along with my colleagues, during the comment period that we have to contest this very unwise, misguided, unacceptable decision. these agencies have just posted for...
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Aug 27, 2012
08/12
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mac putting taxpayer guarantees that which never be a great kid did. you can lend people even if you don't pay of course, it is the first and people like to blame the market for brian not saying they are innocent but they don't go watch of the alcohol. >> look at the source why were so many people so full list. many were lying about their income buying houses but instead of learning from my mistakes they keep that does 1%. the government bubbling is enormous. >> when it pops they will fail again only the losses will be bigger. not just government itself could have a default not paying 100 sense. >> that means we have massive inflation. if the fed doesn't but politically can you foresee the government not to propping the bubble could. >> hopefully they will. not popping it is worse. trying to inflate its common it is the dollar that collapses. the government does not want to bondholders to lose their money for depositors to lose their money. they cannot stop the losses but change their form. >> guinness's is its value but but the better off the list i h
mac putting taxpayer guarantees that which never be a great kid did. you can lend people even if you don't pay of course, it is the first and people like to blame the market for brian not saying they are innocent but they don't go watch of the alcohol. >> look at the source why were so many people so full list. many were lying about their income buying houses but instead of learning from my mistakes they keep that does 1%. the government bubbling is enormous. >> when it pops they...
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Apr 15, 2012
04/12
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eye 152
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that man, the cfo of freddie mac, on how to use securitization. these mortgage-backed securities offered something to that 1%. it gave them a safe place to put their money and get a little extra on the side. in this moment, supply created demand. first for mortgages and then for credit card debt, all furnished by these folks, leland and associates. the knowns. how can one company started industry became from the knowns? if i saw this, it would not make me want to invest in freddie mac securities. [laughter] it is terrifying. but, it would be funnier, i think, if it didn't end in tragedy. these development was not in -- inevitable. it was not -- it was us allowing this to happen. in doing so, he became easier to invest in my credit card debt than in small businesses. i want to give you a sense of that very first mortgage-backed security and where it came from. this is the advertisement from 1969. from the associated mortgage company. they were very proud of getting money into america's ghettos. these are the companies that offered money and 1969, a
that man, the cfo of freddie mac, on how to use securitization. these mortgage-backed securities offered something to that 1%. it gave them a safe place to put their money and get a little extra on the side. in this moment, supply created demand. first for mortgages and then for credit card debt, all furnished by these folks, leland and associates. the knowns. how can one company started industry became from the knowns? if i saw this, it would not make me want to invest in freddie mac...
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Feb 4, 2012
02/12
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mac at the cost of 200 or $300 billion to the federal budget. this was clearly a case where cbo had it right. not that this would inevitably happen but there were particular things that are congress should do in legislation in order to protect the federal government against the potential that something like this would happen. >> host: the federal budget process has broken down in congress. the appropriations were passed as required by law and continued resolutions. what has been cbo's role if any in that process? >> cd and -- cbo's role is to support the process. one thing i was a little uncomfortable talking about the success of the cbo because i'm talking about the success of an organization in the middle of a process no one would say is successful and part of that is the limit of what any organization whose job it is to provide information can do. what the cbo has been doing in that process is what the cbo always those which as congress continues to consider legislation it provides information on the effects of that legislation. doesn't reall
mac at the cost of 200 or $300 billion to the federal budget. this was clearly a case where cbo had it right. not that this would inevitably happen but there were particular things that are congress should do in legislation in order to protect the federal government against the potential that something like this would happen. >> host: the federal budget process has broken down in congress. the appropriations were passed as required by law and continued resolutions. what has been cbo's...
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Jan 31, 2012
01/12
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it would prohibit bonuses for senior executives at fannie fannie mae and freddie mac. i'm joined by senators rockefeller, enzi, johanns, barrasso, blunt, graham, coburn, and thune. since they're placed in conservatorship in 2008 these government-sponsored entities have soaked the american taxpayer fear nearly $170 billion in bailouts. recently freddie mac requested an additional $6 billion and fannie mae requested an additional $7.8 billion. that's $13.8 billion more coming out of the pockets of hard-working americans, many of which are underwater on their mortgages. now, i'd like to read a article from "politico" back in october titled "fannie and freddie bailout big bonuses." federal finance agency, the government regulator for fannie and freddie approved $12.7 million in bonus pay after ten executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure. executives got the bonuses about two years after the federally-backed mortgage giants received nearly $170 billion in taxpaye
it would prohibit bonuses for senior executives at fannie fannie mae and freddie mac. i'm joined by senators rockefeller, enzi, johanns, barrasso, blunt, graham, coburn, and thune. since they're placed in conservatorship in 2008 these government-sponsored entities have soaked the american taxpayer fear nearly $170 billion in bailouts. recently freddie mac requested an additional $6 billion and fannie mae requested an additional $7.8 billion. that's $13.8 billion more coming out of the pockets...
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Mar 21, 2012
03/12
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we should have gotten control of fannie mae and freddie mac, and for the person who proposed this bill, to say that we have underfunded the cfpb and the sec flies squarely in the face of the facts. hilo hugo party heard the facts. mandatory spending on the cfpb is going to be $5.5 billion. the sec funding has gone up as you heard i 77% and got unelected bureaucrats that made close to $200,000 a year, four times the average american salary. this is not the solution. the solution is to repeal dodd-frank and put in regulations to make fannie mae and freddie mac be accountable and with that i yield back. >> the gentlelady is recognized for one minute to close. >> thank you mr. jan thank you colleagues. i do want to say that i agree with my colleague on the other side of the aisle who said it's important to return to the rule of law and that is exactly withism and does. is critical that we support this important amendment to the sec in the cfpb. as transactions have become more and more complex is important for consumers to be able to understand them and the cfpb is doing important work of
we should have gotten control of fannie mae and freddie mac, and for the person who proposed this bill, to say that we have underfunded the cfpb and the sec flies squarely in the face of the facts. hilo hugo party heard the facts. mandatory spending on the cfpb is going to be $5.5 billion. the sec funding has gone up as you heard i 77% and got unelected bureaucrats that made close to $200,000 a year, four times the average american salary. this is not the solution. the solution is to repeal...
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Aug 12, 2012
08/12
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mac. those who voted for a bailout of the bank should be on trial and so should the people who voted for the $800 billion failed stimulus and most importantly nancy pelosi should be on trial for running up the national debt by $5 trillion and putting our nation in financial peril. i would submit that the s&p and moody's's should be on trouble for giving the aaa bond rating to asset securities. these are the people who should be on trial. estimate that ben bernanke should be on trial for policies that debase our currency. >> okay, all right. put government on trial. they are the ones who are guilty. they are the ones who lost our money and they're a ones who should be behind bars. >> thank you. >> all i am saying is if they were the jury would be in trouble right now. >> take a deep breath. >> time to hear from john mackey, the chairman of whole foods. >> would you please take a seat? we would like you to take an oath to take the truth, the whole truth and nothing but this truth. would you
mac. those who voted for a bailout of the bank should be on trial and so should the people who voted for the $800 billion failed stimulus and most importantly nancy pelosi should be on trial for running up the national debt by $5 trillion and putting our nation in financial peril. i would submit that the s&p and moody's's should be on trouble for giving the aaa bond rating to asset securities. these are the people who should be on trial. estimate that ben bernanke should be on trial for...
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Jun 22, 2012
06/12
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if freddie mac and fannie mae leave, there sat the left. quickly and succinctly tell you my recommendation because it brings liquidity that will bring about jobs, improve home sales, help access and affordability notches to veterans, but all americans. yes, freddie and fannie securitize the guaranteed subprime loans, but basso is a mistake for us by congress. congress told them to own up to 13% of paper and affordable housing, which the markets and wall street determined to be subprime loan borrowers. soupy comics c&d started getting lost and started assaulting when the economy went down and they guarantee scott called against freddie and fannie and freddie and fannie lost 171 alien dollars. that is a problem will never correct and resurrect, but he probably will solve up a new propose, the mortgage finance agency, whose goal is to guarantee comes securitize residential mortgages, the phase themselves out over a ten-year period of time. if we put freddie and fannie from conservatorship to receivership with a structured bankruptcy and wind d
if freddie mac and fannie mae leave, there sat the left. quickly and succinctly tell you my recommendation because it brings liquidity that will bring about jobs, improve home sales, help access and affordability notches to veterans, but all americans. yes, freddie and fannie securitize the guaranteed subprime loans, but basso is a mistake for us by congress. congress told them to own up to 13% of paper and affordable housing, which the markets and wall street determined to be subprime loan...
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May 25, 2012
05/12
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the uncertainty created by the nearly four-year conservatorship of fannie mae and freddie mac is just one such challenge. the resulting lack of clarity in the secondary market is a major impediment i believe to private capital returning to our housing finance. without that capital, think it will be difficult to have a sustainable recovery in our housing market. the statutes and rules created by dodd-frank are also proving problematic. the potential consequences of rules pertaining to qualified mortgages or q. m. and qualified residential mortgages or q. r. m. have drawn concerns from industry participants and consumer groups alike. fha has also been woefully neglected. four years fha has severely misjudged the risk to which the taxpayer has been exposed, making a taxpayer bailout a real possibility. despite these past mistakes we can take steps to help the market move forward if we honestly assess our current situation. i think today's hearing is a first good step mr. chairman in that direction. thank you. >> thank you senator shelby. are there any other members who wish to make a bri
the uncertainty created by the nearly four-year conservatorship of fannie mae and freddie mac is just one such challenge. the resulting lack of clarity in the secondary market is a major impediment i believe to private capital returning to our housing finance. without that capital, think it will be difficult to have a sustainable recovery in our housing market. the statutes and rules created by dodd-frank are also proving problematic. the potential consequences of rules pertaining to qualified...
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Apr 12, 2012
04/12
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typically when i begin a speech about fannie mae and freddie mac, or the enterprises as i will refer to them, i set the context by reviewing fhfa's legal responsibilities as conservator. i do so because i believe it is essential for people to understand that congress considers the objectives it wanted fhfa to pursue as conservator. these objectives may not be easy to me, but they are clear. fhfa's job is to preserve and conserve the assets of the enterprises, and in the current state, that translates directly into minimizing taxpayer losses. we are also charged with ensuring stability and liquidity in housing finance, and maximizing assistance to homeowners. today, however, i want to set the context for my remarks in a different way. i'd like to begin with a few words on the human element of this housing crisis. throughout this crisis each of us know of rf heard about any individual stories of homes lost through foreclosure. one cannot help but have sympathy for those that suffered such misfortune. and surely know what to look at the dislocations in the housing market and not feel fr
typically when i begin a speech about fannie mae and freddie mac, or the enterprises as i will refer to them, i set the context by reviewing fhfa's legal responsibilities as conservator. i do so because i believe it is essential for people to understand that congress considers the objectives it wanted fhfa to pursue as conservator. these objectives may not be easy to me, but they are clear. fhfa's job is to preserve and conserve the assets of the enterprises, and in the current state, that...
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Aug 16, 2012
08/12
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fannie mae and freddie mac were much bigger in the marketplace. we did 30-year fixed rate loans. we held them on portfolio. we fully documented every loan and we locked in the interest late the night before foreclosing because we couldn't edge forward into what is a vibrant tba market that allows a borrower, a family to buy a home, go under contract, 30 to 60 to 90 days in advance of the settlement and know any interest rate moves won't block them out of the homeowner ship access and keeps the economy moving. if we look at the extreme versions, in the absence of a complete elimination of a government guaranteed market and a sort of overcorrection on freddie mac and fannie mae's current important role they serve in the housing market, you would see disruption in the current structures of how these 30-year fixed mortgages are being created. the evolution, the volume is created. the securities market, the interaction that's now global in terms of how capital comes in all the depends on this flow. suddenly herky jerk, the water will flow on the floor. it's not going to get to the cup
fannie mae and freddie mac were much bigger in the marketplace. we did 30-year fixed rate loans. we held them on portfolio. we fully documented every loan and we locked in the interest late the night before foreclosing because we couldn't edge forward into what is a vibrant tba market that allows a borrower, a family to buy a home, go under contract, 30 to 60 to 90 days in advance of the settlement and know any interest rate moves won't block them out of the homeowner ship access and keeps the...
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Aug 12, 2012
08/12
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freddie mac. fha. federal rules and bake regulators commanded they own mortgage-backed securities. the worst possible investment they could make federal regulators said they had to. that is responsible for bringing it down. this is my message to you. to restrain government put a muzzle and get rid of dodd/frank, regulations, tax increases our economy will flourish again. mom-and-pop investors will make money and government that built the so small we could drown it in the bathtub. [applause] >> closing statement. >> ladies and gentlemen, of the jury. i agree that government is part of the problem it made the rules to enable them to turn it into a casino. there were big pay-- the drawing talent away from other sectors. the government does need to be reined in and deserve blame. but what should be the rules that govern financial-services? you need to understand the housing bubble was not an accident by government stupidity exclusively. there would have been a housing bubble and financial crisis. from when do regulation permitted mortgage-backed securities to bundle the loans and sell
freddie mac. fha. federal rules and bake regulators commanded they own mortgage-backed securities. the worst possible investment they could make federal regulators said they had to. that is responsible for bringing it down. this is my message to you. to restrain government put a muzzle and get rid of dodd/frank, regulations, tax increases our economy will flourish again. mom-and-pop investors will make money and government that built the so small we could drown it in the bathtub. [applause]...
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Dec 10, 2012
12/12
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does anyone, do any of you or does anyone have a detailed plan on how to put fannie mae and freddie mac into runoff? how do you take a $5 trillion enterprise and put it in discomet canned operations -- discontinued operations over a time period that, you know, would be politically acceptable in terms of disruption? >> we'll let bob start on that, but afterwards if you want to catch me, we can talk about in informally, and i'll share a few ideas with you. >> i certainly don't have a plan. i think that alex and ed do have suggestions and very interesting ones. >> ed? >> may i have a moment just to read the conclusion of mr. johnson's book. >> yes, one minute. >> my ultimate vision is of a housing, finance and real estate system that is sufficiently flexible to fit the capability of every individual family. we should define a system that shows people what they're able to afford and builds their momentum towards ownership by giving them savings vehicles, counseling and information. the possibilities are endless. if people have equity in their home and want to use it, the the system should m
does anyone, do any of you or does anyone have a detailed plan on how to put fannie mae and freddie mac into runoff? how do you take a $5 trillion enterprise and put it in discomet canned operations -- discontinued operations over a time period that, you know, would be politically acceptable in terms of disruption? >> we'll let bob start on that, but afterwards if you want to catch me, we can talk about in informally, and i'll share a few ideas with you. >> i certainly don't have a...
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Jun 22, 2012
06/12
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freddie mac and fannie mae. if they leave there is nothing left. i want to tell you what my recommendation is because it brings liquidity to the mortgage market that will bring about jobs and improve home sales and help access to affordability not just to veterans but all americans. freddie and fannie mae and bad mistake and securitized and guaranteed sub prime loans but that was forced on them by congress. congress told them to own 13% of its paper in affordable housing which of markets and wall street determined to be some prime borrowers so credit started getting prime loans and started defaulting when economy went down and guarantees got called against freddie and fanny and they lost $171 billion. that is a problem we will never correct and we got to solve with a new agency i propose which is the mortgage finance agency. the goal is to guarantee, securitized and rap residential mortgages and phase themselves out over period of time. put freddie and fannie into receivership like structured bankruptcy and wind
freddie mac and fannie mae. if they leave there is nothing left. i want to tell you what my recommendation is because it brings liquidity to the mortgage market that will bring about jobs and improve home sales and help access to affordability not just to veterans but all americans. freddie and fannie mae and bad mistake and securitized and guaranteed sub prime loans but that was forced on them by congress. congress told them to own 13% of its paper in affordable housing which of markets and...
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Dec 24, 2012
12/12
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barney frank was the godfather of fannie mae and freddie mac in the u.s. congress, and the two of them -- mozilo in the private sector, frank in the public sector through fannie and freddie -- were the unholy alliance who allowed the people who with profited from countrywide to create loans that people could never repay. they just turned around and sold those loans to the federal government, and how was that made possible? it was made possible by barney frank through fannie and freddie in the names of altruistic social benefits. housing for everybody, and let's put poor people into mcmanagess that they can't afford. that's the world of atlas shrugged, the world we just barely survived in the financial crisis. >> host: donald luskin, what do you do for a living? >> guest: i'm an investment adviser for other investment advisers. >> host: what does that mean? >> guest: i give strategic ad vice on the stock market and commodities markets to other investment managers to serve customers. hedge fund managers, mutual fund managers, investment counselors, the like.
barney frank was the godfather of fannie mae and freddie mac in the u.s. congress, and the two of them -- mozilo in the private sector, frank in the public sector through fannie and freddie -- were the unholy alliance who allowed the people who with profited from countrywide to create loans that people could never repay. they just turned around and sold those loans to the federal government, and how was that made possible? it was made possible by barney frank through fannie and freddie in the...
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Aug 26, 2012
08/12
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you compounded the government era when you had things like fannie mae, freddie mac the fha putting guarantees on the mortgages that would not have been originated during a free market. they woulded have been worried about not getting paid back. they told the bangs you can lend money to people even though they won't pay you back. the taxpayer will. we had the hazard and it butter. bust. at love people like to blame the market for that. they like to blame wall street's fault. i'm not saying they're innocent. they drunk a lot of the alcohol that the fed was pour and acted irresponsible belie under the influence that have. you have to look to the source. why were so many people so foolish? simultaneously, not just on wall street, plenty of people on main street were lying about the income and buys housing they nude -- knew they couldn't afford. they were drunk on the cheap money. they kept repeating them instead of learning them. the bad monetary policy we have under bernanke are worse than green span. we have 0% interest rates. that's doing more damage than the 1% we got at the lows under green
you compounded the government era when you had things like fannie mae, freddie mac the fha putting guarantees on the mortgages that would not have been originated during a free market. they woulded have been worried about not getting paid back. they told the bangs you can lend money to people even though they won't pay you back. the taxpayer will. we had the hazard and it butter. bust. at love people like to blame the market for that. they like to blame wall street's fault. i'm not saying...
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Dec 1, 2012
12/12
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mac, the fha putting the taxpayer guarantees on mortgages that never would have been originated in the free market because in the free market people would have been worried about not getting paid back. but the government basically told the banks you can lend money to people even though you know they are not going to pay you back because the taxpayer will. as we have a bubble based on that moral hazard and based on cheap money, and of course it burst. a lot of people like to blame the market for that. they like to blame wall street. it's not wall street's fault. i'm not saying they are completely innocent. they drank a lot of the alcohol that the fed was pouring and they acted irresponsibly under the influence. but you have to look to the source. you have to look at why were so many people so foolish simultaneously not just on wall street. plenty of people on main street were lying about their income and buying houses they couldn't afford. but unfortunately, instead of learning from its mistakes, they just keep repeating them on a bigger scale. the bad monetary policy that we have now a
mac, the fha putting the taxpayer guarantees on mortgages that never would have been originated in the free market because in the free market people would have been worried about not getting paid back. but the government basically told the banks you can lend money to people even though you know they are not going to pay you back because the taxpayer will. as we have a bubble based on that moral hazard and based on cheap money, and of course it burst. a lot of people like to blame the market for...
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Mar 14, 2012
03/12
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eye 111
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in more modern times agreed fannie mae and freddie mac. we may wonder about the policy implications of that but it commit all kinds of commerce that didn't exist before and no one would say that was wrong. if we go back to the new deal cases, the famous wiki? no, mr. phil burns we did was going to be kept on his harvard was going to enter commerce. yet the court said it could be regulated. and i don't think that children could have won his case as something force by week and interstate market as the judge said. so i think the activity, inactivity distinction, although further interesting when you drill down into what is the meaning doesn't really have a lot. and i would also step back and say what were the frantically trying to do? it seems to me they were trying to delineate interstate commerce as an area and then say with in that sea or the federal, has the same plenary power that the states do. and since as i said before, i think everyone agrees that th
in more modern times agreed fannie mae and freddie mac. we may wonder about the policy implications of that but it commit all kinds of commerce that didn't exist before and no one would say that was wrong. if we go back to the new deal cases, the famous wiki? no, mr. phil burns we did was going to be kept on his harvard was going to enter commerce. yet the court said it could be regulated. and i don't think that children could have won his case as something force by week and interstate market...
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Mar 4, 2012
03/12
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down, the russians approached the chinese and said let's dump our fannie mae and freddie mac and force the u.s. to bail them out and possibly bankrupt america. he called it a disrupted skin to the chinese apparel he said said no and told hank paulson, we know this, he put in his memoirs. some people have said you can't fault the russians were getting out of a bad investment in an effort. it was a better rate on thing every. they had problems, but it wasn't just getting out of a bad investment. if that's the case it would've encouraged the chinese to do it also. okay, so what do we do? we can do, number one, recognize that this is a global economic were. that is what we're fighting right now, and economic were. i've been all through the defense department, all through justice, every place i can go think it's an economic were. the reality is that most people don't realize that. it's all in the book. to demonstrate of economic were started with the twin towers. what do we do? we are funding both sides of the war on terror. right now, every time we fill our gas tank we are filling up oil t
down, the russians approached the chinese and said let's dump our fannie mae and freddie mac and force the u.s. to bail them out and possibly bankrupt america. he called it a disrupted skin to the chinese apparel he said said no and told hank paulson, we know this, he put in his memoirs. some people have said you can't fault the russians were getting out of a bad investment in an effort. it was a better rate on thing every. they had problems, but it wasn't just getting out of a bad investment....
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Aug 16, 2012
08/12
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eye 145
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fannie mae and freddie mac were much bigger in the marketplace. we did 30-year fixed rate loans. we held them on portfolio. we fully documented every loan and we locked in the interest late the night before foreclosing because we couldn't edge forward into what is a vibrant tba market that allows a borrower, a family to buy a home, go under contract, 30 to 60 to 90 days in advance of the settlement and know any interest rate moves won't block them out of the homeowner ship access and keeps the economy moving. if we look at the extreme versions, in the absence of a complete elimination of a government guaranteed market and a sort of overcorrection on freddie mac and fannie mae's current important role they serve in the housing market, you would see disruption in the current structures of how these 30-year fixed mortgages are being created. the evolution, the volume is created. the securities market, the interaction that's now global in terms of how capital comes in all the depends on this flow. suddenly herky jerk, the water will flow on the floor. it's not going to get to the cup
fannie mae and freddie mac were much bigger in the marketplace. we did 30-year fixed rate loans. we held them on portfolio. we fully documented every loan and we locked in the interest late the night before foreclosing because we couldn't edge forward into what is a vibrant tba market that allows a borrower, a family to buy a home, go under contract, 30 to 60 to 90 days in advance of the settlement and know any interest rate moves won't block them out of the homeowner ship access and keeps the...
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Aug 2, 2012
08/12
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by the way, they also have a lower default rate than fannie may and freddie mac. when you look at the private sector, what they're doing appears to be quite different and indeed perhaps the opposite of what f.h.a. is doing. they are going through their portfolios and reducing principal. not because they want to provide charity, not because they are insensitive to moral hazard but because it is the best way to preserve their portfolio and generate shareholder value for their shareholders. that's what they're this the business of doing. they have a fiduciary duty to do that. so it would appear that the private sector seems not only completely comfortable with principal reduction, but they in fact will doing it because it is good for their bottom line. and yet we have f.h.a. essentially saying, well, we can't do it. it's so unbusiness-like. it won't preserve our portfolio. it doesn't make sense, et cetera. i think this is one of those examples where they just don't get it, frankly. now, if a principal reduction provides greater value than foreclosure toward private i
by the way, they also have a lower default rate than fannie may and freddie mac. when you look at the private sector, what they're doing appears to be quite different and indeed perhaps the opposite of what f.h.a. is doing. they are going through their portfolios and reducing principal. not because they want to provide charity, not because they are insensitive to moral hazard but because it is the best way to preserve their portfolio and generate shareholder value for their shareholders. that's...
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Mar 21, 2012
03/12
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>> like i say, a good neighbor made the comments that you made on fannie mae and freddie mac. you're right. people have said all sorts of things in the past about no risk. but the trend one is really exceptional and how it has been designed. we have decades of experience through terrible crises looking at whether those financial safeguards were tested and how did we do? i am very confident that those financial cigars will protect the interest of the american taxpayer, and i think it would be much riskier for the u.s. economy for us to try to pull the tran-two imf back to help the needs of its members or elsewhere is. >> i noted in 2000 and nine the cbo, when they were analyzing to increase by $108 billion, they did a present value risk adjustment and said the potential cost of american taxpayers would be by billion dollars. what would be your response to that? >> you are right. from decades of practice in reaching that judgment, and i do not agree with that. i do not share it. but you could think of that as an extreme precautionary balance in that context and it doesn't change
>> like i say, a good neighbor made the comments that you made on fannie mae and freddie mac. you're right. people have said all sorts of things in the past about no risk. but the trend one is really exceptional and how it has been designed. we have decades of experience through terrible crises looking at whether those financial safeguards were tested and how did we do? i am very confident that those financial cigars will protect the interest of the american taxpayer, and i think it would...
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Jun 29, 2012
06/12
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fifth, the banking regulation regulators, fannie mae and freddie mac in fha, should not escape evaluations safety and soundness review and enforcement. , while automated valuation models serve as a useful and cut method of fraud, they should never use it for all mortgages that exceed $50,000. there is a need for a more effective consumer protection, transparency and education, including a dedicated consumer complaints hotline managed by the cfpb in collaboration with not-for-profit organizations. responsible appraisal practices ensure and extend housing opportunities is as an open society. it is unfortunate today that we still see issues of the age of housing, predominant value and use of comparables, coupled with objective remarks with regard to the quality of housing in america's lowest income or minority communities. in appropriate appraisal under evaluation is equally damage to homeowners, communities, and investors and insurers. we are seeing widespread under evaluation use of broker price opinions to a short sale process come or a general reluctance to recognize that in some communit
fifth, the banking regulation regulators, fannie mae and freddie mac in fha, should not escape evaluations safety and soundness review and enforcement. , while automated valuation models serve as a useful and cut method of fraud, they should never use it for all mortgages that exceed $50,000. there is a need for a more effective consumer protection, transparency and education, including a dedicated consumer complaints hotline managed by the cfpb in collaboration with not-for-profit...
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Jul 8, 2012
07/12
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mac? ean,here gert itns.eyfu h at? threnyseat eyfnds. radical and tackiness to our system. this is not a mocracy nmre ihhr t moy. i ing h oln. e'nyut obviously. though these foundationsxist under the tax code. the tax code awhy aretey geg mon cathremo t newlrewhe for, that is the definition. i mean, it is in so many words. e xode au a pocande.rn iw de ti ory id srt pocart that is partisan. that is not the general welfare. well come on. you are supporting yrepg ocalade,open ors. di. ths pic about. said the irs can this redefined with political and less hable kithabl e its it. eree ati oitr we into creating an ideology, multiculturalism and to just live in it. they put up money i mean for ogra hpnd spic curriculum, which is -- i mean come on to a crassly. i hate america currulum. they curriculutat says amica aeisrit anher way, and i think this is advisable, as descends at these fodati wn of remefun. h fn h board or when henry for the support, an rsolrt exist at. erve so be three big conserva
mac? ean,here gert itns.eyfu h at? threnyseat eyfnds. radical and tackiness to our system. this is not a mocracy nmre ihhr t moy. i ing h oln. e'nyut obviously. though these foundationsxist under the tax code. the tax code awhy aretey geg mon cathremo t newlrewhe for, that is the definition. i mean, it is in so many words. e xode au a pocande.rn iw de ti ory id srt pocart that is partisan. that is not the general welfare. well come on. you are supporting yrepg ocalade,open ors. di. ths pic...
59
59
May 31, 2012
05/12
by
CSPAN2
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fannie mae and freddie mac are nominally private corporations and they have a shareholders and abort but they were established by congress in support of the housing industry and they are known as government-sponsored enterprises. fannie and freddie as they are called, don't make mortgages. you can't go to fannie's headquarters and get a mortgage. what they do instead is they are the middleman so to speak between the originator of the mortgage and the ultimate holder of the mortgage. so if you are bank and you make a mortgage loan if you like, you can take the mortgage you made and you can sell it to fannie or freddie. they will in turn take all the mortgages they collect, put them together into mortgage-backed securities called mbs so mortgage-backed securities and security which is a combination of hundreds of thousands of other like mortgages and then sell that to the investors. that is a process called securitization and fannie and freddie pioneered this bake is -- basic approach for orchids. particular the gse of fannie and freddie, when they sell their mortgage-backed securities
fannie mae and freddie mac are nominally private corporations and they have a shareholders and abort but they were established by congress in support of the housing industry and they are known as government-sponsored enterprises. fannie and freddie as they are called, don't make mortgages. you can't go to fannie's headquarters and get a mortgage. what they do instead is they are the middleman so to speak between the originator of the mortgage and the ultimate holder of the mortgage. so if you...
116
116
Apr 5, 2012
04/12
by
CSPAN2
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eye 116
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this is bad for freddie mac from 1984. and these are the loans, the cfo of freddie mac on how to use the securitizations because these new mortgage-backed securities offered something to the 1%, offered them a safe place to put their money and get a little extra on the side and on this moment supply the demand for the mortgages and then for credit card debt furnished by these folks on the mission associates and hawken won the company's third and industry the gulf came from the mission associates. if i saw this it wouldn't make me want to invest in the freddie mac securities. it is terrified, but it would be fun aerating if it didn't end in tragedy and these developments were not inevitable. it wouldn't be the knowns that made mortgage-backed securities after all. it was government policy, business policy and ultimately it was us allowing this to happen and doing so it became easier to invest in my credit card debt than and the small businesses. i want to give you a sense of that very first mortgage-backed security and wher
this is bad for freddie mac from 1984. and these are the loans, the cfo of freddie mac on how to use the securitizations because these new mortgage-backed securities offered something to the 1%, offered them a safe place to put their money and get a little extra on the side and on this moment supply the demand for the mortgages and then for credit card debt furnished by these folks on the mission associates and hawken won the company's third and industry the gulf came from the mission...
168
168
Jun 26, 2012
06/12
by
CSPAN2
tv
eye 168
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freddie mac fannie mae leave there is nothing left. so i went to bring my recommendation to improve home sales and access affordability to all americans. yes they made a bad mistake that was forced by congress. they said get about 13% of its paper but wall street decided to the subprime borrowers and then they started to default and the guarantees were called. they lost $171 billion. may can never correct but the mortgage finance agency based themselves out over a tenure period of time. put fannie and freddie into receivership open the mortgage finance agency of qualified residential mortgage. the recession that began was not of over lending but under underwriting. people were not prepared. then we had a crescendo of difficulties. you must have of 5% down payment and supplemental insurance between 50 and 70% so half of the obligation is insured when you make the loan. the bar were harassed to have the income. and a credit report and the appraisal comment title insurance to search the title, going back to the old fashioned days of putti
freddie mac fannie mae leave there is nothing left. so i went to bring my recommendation to improve home sales and access affordability to all americans. yes they made a bad mistake that was forced by congress. they said get about 13% of its paper but wall street decided to the subprime borrowers and then they started to default and the guarantees were called. they lost $171 billion. may can never correct but the mortgage finance agency based themselves out over a tenure period of time. put...
124
124
Jun 25, 2012
06/12
by
CSPAN2
tv
eye 124
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freddie mac and fannie mae. they guaranteed securitize and wrap loans presidential mortgage. mortgage. when they came under tremendous pressure, and i mean tremendous pressure, and a subprime crisis, freddie and fannie went under a lot of the rest and they became a wounded brand. and now are any conservatorship. demarco to a great job and quite frankly they're not the agency they really need to be. they aren't because the politics but there's got to be something to replace freddie and fannie. everybody says get rid of them. if you get rid of them didn't have anything to back them up. people forget that after, when the depression it, thanks got out of business of making loans. we pass laws to encourage savings and loans to be created and we gave them a preference against banks and interest so they could make loans. but after the 1986 tax act, the savings and loans went under because we had the rtc. they went down. what has replaced them? freddie mac and fannie mae. as freddie mac and fannie mae leave, there's not
freddie mac and fannie mae. they guaranteed securitize and wrap loans presidential mortgage. mortgage. when they came under tremendous pressure, and i mean tremendous pressure, and a subprime crisis, freddie and fannie went under a lot of the rest and they became a wounded brand. and now are any conservatorship. demarco to a great job and quite frankly they're not the agency they really need to be. they aren't because the politics but there's got to be something to replace freddie and fannie....
100
100
Apr 8, 2012
04/12
by
CSPAN2
tv
eye 100
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fannie mae and freddie mac are actively up on the list. so there were these dead issues, but a large extent are encouraged by policy. you're right there is no question there's this great incentive for politicians to spend more than a half. so that is wasting this book points out, look, some politicians are in a different direction and things are better as a result of that. moreover maybe constraints like the balanced budget amendment that do have a constraint on policymakers. it is a way to enforce some of these principles and get away from the day-to-day actions. but i have to say looking at the history and for that matter being involved in policy in the long this. i'm talking to people who are there lakeshore scholz, there is no question that the people themselves make a huge difference and the courage and concern about the country in a broader sense. so we emphasize that a lot because the voters need to look at candidates from that perspective as well and fine people that are not only committed to the principles which make so much sense
fannie mae and freddie mac are actively up on the list. so there were these dead issues, but a large extent are encouraged by policy. you're right there is no question there's this great incentive for politicians to spend more than a half. so that is wasting this book points out, look, some politicians are in a different direction and things are better as a result of that. moreover maybe constraints like the balanced budget amendment that do have a constraint on policymakers. it is a way to...